Bitcoin,
Cryptocurrency,
Blockchain:
What is it?
Why should I care?

Morgan C. Benton & Nicole Radziwill

morphatic.com

Key Concepts

• Decentralized → No central authority
• Distributed Ledger → Automated auditing
• Immutable → Cannot be changed (easily)
• Consensus → Built into the platform
• Trust → Really the obviation of trust
• Smart Contract → Business rules enforced
  by code

I am not planning to go into any great depth about the technical aspects of implementing blockchain applications today

What kinds of problems can blockchain address?

• Identification/Authentication
• Tracking physical objects
• Registration/Titling
• Voting
• Compensation for Consumption of Digital Goods
• Currency

...Until Now

In the Future...?

Possibilities:

• Un-fake-able (trust)
• Truly global, decentralized
• True control over personal information

Challenges:

• Privacy!
• Increased consequences for identity theft

Identification/Authentication

...Until Now

In the Future...?

Possibilities:

• Smart-contracts auto execute on arrival scan
• Reduce/eliminate escrow
• Distributed manifests for secure chain of custody
• Open and transparent system → fairer pricing
• Track source of food, diamonds, minerals, etc.

Tracking Physical Objects

(i.e. supply chain)

Challenges:

• Customs (think manifests)
• Shrinkage (not the Seinfeld kind)
• Excessive brokers/ intermediaries

...Until Now

In the Future...?

Possibilities:

• Secure, efficient, digital land registries lead to global accountability

Registration/Titling

Challenges:

• Land ownership is fundamental to social mobility
• Corruption and/or poor/non-existent record keeping are a barrier, e.g. The Big Short, Daufuskie Island

Brian Behlendorf, Hyperledger

...Until Now

In the Future...?

Possibilities:

• Enable true (vs. representative) democracy
• Could expand shared decision making at all levels
• Could enable more sophisticated voting strategies
• Reduce corruption

Voting

Challenges:

• Where to start...!

...Until Now

In the Future...?

Possibilities:

• Smart Contract enables an automatic micro-payment for each use of the digital content
• Remove intermediaries; pay goes directly to content creators

Payment for Digital Goods

Challenges:

• Piracy

Cryptocurrency

The Shape of a Bubble

Key Functions of Money

• Medium of Exchange
• Measure of Value
• Store of Value

It's not clear that cryptocurrencies actually fulfill any of these functions!!!

Some Cryptocurrency Buzzwords

• ICO (Initial Coin Offering)
• Crowdsale
• Token
• Bitcoin
• Ether/Ethereum
• Litecoin (+>4,000 others; more every day)

Some Cautions...

• It's still the wild west in the domain of cryptocurrency
• The bubble is almost assuredly being driven by a lot of speculation
• Don't bet more than you can afford to lose
• Don't expect a government to help you if you lose out
• It's not clear what (if any) value is behind any of the currencies
• It is clear that some of the bubble is fueled by ransom

https://blockchainascending.com

Questions?